Wilmar Profit Falls 4.7% After Lower Plantation Value Gain

By Michelle Yun -
Feb 21, 2013

Wilmar International Ltd. (WIL), the
largest palm oil processor, said fourth-quarter profit dropped
4.7 percent after palm oil prices declined and it booked a lower
gain in the value on its plantations.

Net income was $476.8 million in the three months ended Dec.
31, from $500 million a year earlier, the Singapore-based
company said today in a statement. Sales increased 0.9 percent
to $11.6 billion.

Wilmar was the worst peforming stock last year on the
Singapore’s benchmark index amid losses at its oilseeds unit,
which processes soybeans into meal and oil. It recorded a $28.8
million gain on its plantations, from a $262.7 million gain a
year ago, the company said.

“Most key segments delivered higher profit from operations
in the fourth quarter, with the exception of plantations and
palm oil mills, which was affected by lower crude palm oil
prices,” the palm oil processor said in today’s statement.

The stock lost 1.6 percent to S$3.68 at the close in
Singapore yesterday. The announcement today was made before the
start of trading.

Fourth-quarter profit, excluding non-operating items and
biological asset gains, was $400.9 million, compared with $264.5
million a year earlier. That compares with the $412.2 million
average estimate of four analysts surveyed by Bloomberg News.